Wednesday, March 26, 2008

Co-ops' Annual Meetings and Financial Reports

The New York Times
March 26, 2008

Q. Could you tell me when co-ops in New York are supposed to schedule their annual meetings and, more important, when they must distribute audited financial reports and the year’s budget to shareholders? Our co-op board insists that the earliest possible date it can have an annual meeting is the second Monday in May. It also claims that audited financials and the year’s budget cannot be distributed before the beginning of May.

A. “Each co-op is different,” said Lisa Breier Urban, a Manhattan co-op lawyer. “And the date the annual meeting is to be held is generally contained in the bylaws of the corporation.”

She added that most co-op governing documents do require that the shareholders be provided with a financial statement, although some may not require the statement to be certified. Some co-ops do not provide an annual budget to their shareholders.

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